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GENERAL INFORMATION

Logo PG SILESIAPG SILESIA (Przedsiębiorstwo Górnicze "SILESIA" sp. z o.o.) is a company, located in southern Poland, which main activity is excavation of hard coal. Since 2012 the Company has been producing hard coal intended for energy sector but also specific types of coal for retail sales. Except from hard coal, PG SILESIA also sales mine gas, stone for building works and provides solutions referring to ecological storage of energy minerals (ash and ash mixes).

The Company has modernized hard coal mine „Silesia”, located approximately 30 kilometers from Polish-Czech border, within area of following cities: Czechowice-Dziedzice and Pszczyna and municipalities of Goczałkowice-Zdrój, Bestwina and Miedźna.

Its balance resources exceed 500 million tons of low-sulphur coal, and balance resources of methane exceed 1,1 billion m3.

Exploiting hard coal since 110 years “Silesia” mine can boast a rich mining tradition. Mine’s underground includes 2 production levels and 2 ventilation levels with the network of 39,7 kilometers of excavations.

Mine’s surface includes treatment plant, salt water reservoir in Kaniów and mechanical, electrical and shaft infrastructure. Underground is connected with surface by 5 shafts: 3 shafts for exploitation and transport purposes and 2 ventilation shafts with the maximum depth of 556 meters.

Since mine’s take over, it has been the priority to create a company investing in innovative solutions, while retaining the highest standards of safety. Multimillion-dollar investments relate mainly to the modernization of the mine and preparatory works, but also to raising the work standards of all employees.

PG SILESIA is a private company with foreign capital. The company is proud of the fact that a minority stake of shares in PG SILESIA belongs directly to the employees.

PG SILESIA operates in accordance with the law and with respect for the principles of sustainable development. It means that every action of the Company aims to improve the quality of future generations’ lives. As a part of the local community, PG SILESIA supports the development of society, takes an active part in providing vocational and educational opportunities and in generally interpreted development of the region.

Coal seam is deposited in mining area called “Czechowice II”, with an area of 21,36 km2 and it was accepted by decision of Ministry of Environmental Protection, Natural Resources and Forestry, dated 26.08.1994.

Borders of mining area “Czechowice II” are the same as borders specified in concession number 162/94, dated 26.08.1994, issued by Ministry of Environmental Protection, Natural Resources and Forestry. The concession refers to excavation of coal and methane from the seam of Silesia Mine. Abovementioned concession, applying to excavations of coal and methane – as accompanying mineral - from mining area called “Czechowice II”, was changed by Ministry of Environmental Protection, Natural Resources and Forestry on 23.07.1999 (ref. no. Dge/WL/487/3343/99 Item 14.2.). This change was connected with enlarging the mining area in two seams: 312 and 315 up to 21,85 km2 and enlarging the mining area up to 30,81 km2.

When it comes to geographical location of “Czechowice II” mining area, which includes coal seams “Silesia”, it is located on the verge of Oświęcim Valley, bounded on the North by Silesian Highlands, and on the South by Silesian Foothills. Area, where coal reserves are located, is in the administrative boundaries of Silesia province.

In geological structure of „Silesia” seam, to a documentation depth of 1000 meters, there are involved Quaternary and Neogene deposits and productive carboniferous including following layers: "łaziskie" (group 200), "orzeskie" (group 300), "rudzkie" (group 400), "siodłowe" (group 500) i "brzeżne" (group 600). Balance seams, in amount of 45, occur in all stratigraphic layers and commercial seams, in amount of 20, occur only in „łaziskie” layers (group 200) and „orzeskie” layers (group 300). Thickness of balance seams is within 1,00-7,20 meters and commercial seams is within 1,20-3,50 meters. As of 31.12.2012 balance reserves of the seam amount to 505,175 mln Mg, where128,926 mln Mg is classified as commercial reserves.

Additional mineral, which accompanies the hard coal in Silesia seam, is coal seam’s methane. Balance resources of the methane are estimated to gain approximately 1,116 billion m3. Output of the methane from surface holes and output from underground demethanization process was approximately 1,48 million m3 in the year 2012 . It is fully managed by selling the methane to other entities. According to the data from 2012 absolute methane-bearing capacity of the mine amounts to approximately 35,21 m3 per minute.

Silesia Mine excavates the seams which are classified to 4th category of methane hazard, to the class B when it comes to coal dust explosion hazard and to 1st category of water hazard.

Ventilation system in the mine consists of 3 downcast shafts (no. 2, no. 3, no. 4) and 2 upcast shafts (no. 1 and no. 5). It includes also underground excavations, approximately 39,7 kilometers long. Recently approximately 14 thousand m3 of air flows through the mine per one minute.